Setting Expectations For a Bookkeeper

We like to think we can learn any skill it takes to run a company, that might be true for some business owners, but for others learning to do the books properly can be a huge challenge. Hiring a bookkeeper may be helpful for the bookkeeping-challenged. Here are 10 expectations a business should have to make sure a bookkeeper will have the skills to be part of the team.

1. A bookkeeper must have an understanding of the big picture. When you purchase a piece of equipment, a bookkeeper must know the concept of setting up the asset and liability accounts and know how to allocate the payment to interest expense and liability principal reduction.

2. Have a basic understanding of the five basic types of accounts. The bookkeeper should have a basic understanding of the difference between assets, liabilities, equity, income and expenses.

3. Take care of all the little things that have to do with financial operations. The bookkeeper must be detail oriented and able to focus on the little things which enables the big things to take care of themselves.

4. Good communication skills. The bookkeeper must be willing to ask for clarification or help if they don't understand something. Communication is critical to your understanding of what's taking place with the bookkeeping without having to be the one doing the day to day work.

5. They must have an understanding of the three basic financial statements. Profit and loss, balance sheet and cash flow statements should be made available to you by the 10th of the following month by the bookkeeper.

6. A bookkeeper must be computer literate. This really goes without saying. Gone are the days of doing books by hand. A bookkeeper needs to be familiar with bookkeeping software and be experienced with Word, Excel, e-mail and the internet.

7. A bookkeeper must be willing to continue their education. Your bookkeeper should be committed to enhancing their skills with classes or self-study. It is important for them to stay up to date with the accounting skills any business requires.

8. A bookkeeper needs to have a basic understanding of your industry. Each industry has different terms and insider aspects that can only be learned on the job. Make sure a bookkeeper has a general understanding of your industry.

9. Understand how to do proper job costing for the business. All job costs must be tracked by item and job detail. This is critical to knowing how much a project truly costs. It is important to be able to depend on the bookkeeper's information being accurate and reliable.

10. A bookkeeper must be willing to make a strong commitment to your business. Find someone who is willing to make your business a priority and is focused on getting things done in a timely manner.

Set expectations for a bookkeeper before you hire them to ensure the business will function in a profitable way. To know where your business is headed you must be able to rely on the books and the bookkeeper. Ensure the success of your business by hiring a bookkeeper as part of your team. Good financial records are part of the road to success and a good bookkeeper can help pave that road.